Insurance tax could go, says Queensland
While some states continue to ignore the increasing clamour for insurance tax reform, Queensland is reportedly considering the abolition of stamp duty on insurance transactions.
The Australian Financial Review says the possibilities of reform are included in an unpublished submission to the Federal Government’s review of the Australian tax system.
The report says the Queensland Government is willing to scrap stamp duty on insurance and motor vehicle registrations to help reform the mismatch between state and federal revenue and expenditure responsibilities.
The base rate for duty on general insurance in Queensland is 7.5%. It will be worth an estimated $426 million to the state this financial year.
Other states with more to lose, such as Victoria and NSW, are potentially less likely to join the push.
In Victoria, for example, a 10% stamp duty is charged after the controversial fire services levy and GST are applied.
The Australian Financial Review says the possibilities of reform are included in an unpublished submission to the Federal Government’s review of the Australian tax system.
The report says the Queensland Government is willing to scrap stamp duty on insurance and motor vehicle registrations to help reform the mismatch between state and federal revenue and expenditure responsibilities.
The base rate for duty on general insurance in Queensland is 7.5%. It will be worth an estimated $426 million to the state this financial year.
Other states with more to lose, such as Victoria and NSW, are potentially less likely to join the push.
In Victoria, for example, a 10% stamp duty is charged after the controversial fire services levy and GST are applied.